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Accounting Act
Accounting Act B.E. 2543 (2000)
The information is reviewed and updated monthly against official sources.
In short
The Accounting Act B.E. 2543 (2000) sets out which Thai entities (including land-holding companies) must keep statutory accounts, appoint a qualified bookkeeper, have annual financial statements audited, and retain records, with fines and possible imprisonment for breaches.
Section 7: Director-General's power to prescribe accounting requirements
The Director-General of the Department of Business Development issues notifications fixing the categories of accounts to be maintained, the entries and particulars to be recorded, the time within which they must be entered, the supporting documents required, and the qualifications and conditions for bookkeepers. These notifications give the Act its operational detail.
Section 8: Entities obliged to keep accounts
The duty to keep accounts falls on registered partnerships, limited companies and public limited companies formed under Thai law, foreign juristic persons carrying on business in Thailand, and joint ventures under the Revenue Code. A Thai land-holding company therefore must maintain full statutory accounts from incorporation onward.
Section 9: When the duty to keep accounts begins
Accounting must commence from the date of registration for partnerships and companies, from the day a foreign juristic person starts operating in Thailand, and from the start of activity for a joint venture. No grace period applies, so a newly formed property-owning company records transactions from day one.
Section 10: Closing of accounts
Accounts must be closed for the first time within twelve months of commencement, and thereafter at least once every twelve months. Earlier closing requires written approval from the Chief Accounts Inspector. This fixes the annual accounting cycle that underpins each year's financial statements.
Section 11: Audited financial statements and filing deadlines
Financial statements must be prepared at each closing and, as a rule, audited with an opinion by a licensed auditor. Limited and public companies submit statements within one month after shareholder approval, while partnerships, foreign entities and joint ventures file within five months of closing. Small registered partnerships may be exempt from audit.
Section 12: Duty to supply accurate source documents
The person responsible for keeping accounts must hand the bookkeeper complete and correct supporting documents, so that the resulting records faithfully reflect operating results, financial position and changes in accordance with the facts and recognised accounting standards. Directors cannot blame the bookkeeper for gaps they themselves caused.
Section 13: Place of keeping accounts
Accounts and their supporting documents must be kept at the registered place of business, or the usual place of production, storage or work. Keeping them elsewhere requires prior written permission from an Accounts Inspector. This ensures records remain accessible to inspectors at the company's declared location.
Section 14: Minimum retention period of records
Accounts and supporting documents must be retained for at least five years counting from the date the accounts are closed. The Director-General or Chief Inspector may extend this to up to seven years for certain businesses. Tax rules under the Revenue Code can impose comparable retention duties in parallel.
Section 15: Reporting loss or damage of records
If accounts or supporting documents are lost or damaged, the responsible person must notify the Chief Accounts Inspector or an Accounts Inspector within fifteen days from the day the loss or damage became known or should reasonably have been discovered. Prompt notice protects the company against presumptions of concealment.
Section 19: Obligation to appoint a qualified bookkeeper
The entity must engage a bookkeeper who meets the qualifications and conditions set by the Director-General, and must supervise that person so the accounts comply with the Act. Small operators may keep their own books where permitted, but companies generally rely on a properly qualified accountant.
Section 20: Bookkeeper's standard of work
The bookkeeper must keep the accounts so they present operating results, financial position and any changes truthfully and in line with accounting standards. The bookkeeper is personally bound to apply professional standards, complementing the responsible person's duty to provide accurate documents.
Section 21: Language and currency of accounts
Entries are made in Thai, or in a foreign language accompanied by Thai, or in accounting code with a Thai translation. Amounts are recorded in Thai Baht, with ink, typing or printing required and figures written in Arabic or Thai numerals, ensuring records are legible to authorities.
Penalties (Sections 27-40): Fines and imprisonment for non-compliance
Failure to keep proper accounts, file statements, retain records, or obstruct inspectors carries fines, commonly from a few thousand up to around sixty thousand Baht, and serious offences such as falsifying or destroying accounts can lead to imprisonment of up to three years. Directors and managing partners may be personally liable.